| Brown says UK to maintain triple AAA credit rating |
Prime Minister Gordon Brown said on Wednesday he believed Britain would maintain its coveted top credit rating and announced a pay freeze for top civil servants to help tame a record deficit.
Setting out his economic plans weeks before an election, Brown said recovery remained fragile and that to change course now would risk plunging the country back into recession.
His message contrasted with that of opposition Conservative leader David Cameron who is campaigning on a "time for change" slogan and wants to make a quicker start on cutting a deficit forecast to exceed 12 percent of GDP this year.
"We face crucial decisions. Cut now at home -- fail to protect our frontline services, fail to invest in the growth sectors of the future -- and we could push our economy back into recession," Brown said in a speech at Thomson Reuters in London.
He said cuts should only come once recovery was assured but added that markets should take note of a government commitment to halve the deficit over four years.
"This four-year deficit reduction plan, legally binding, legislated in parliament, is I think very clear and I think the markets should understand this," he said.
Brown said he believed that the longer maturity of British government debt put it in a better position than other countries with large deficits.
Asked about Britain's triple A credit rating, he said: "I believe we will maintain that credit rating."
PAY FREEZE
Brown's finance minister Alistair Darling will deliver a final budget on March 24 before an election expected on May 6.
The Conservatives had a lead of more than 10 points in opinion polls for many months, but the gap has closed and there is now the prospect of an inconclusive election in which neither of the two main parties wins an outright majority -- an unusual occurrence under the British electoral system.
To show he was serious on tackling the deficit, Brown announced a wage freeze for the highest paid in the public sector. "We will ... freeze the pay for senior staff in the civil service, senior staff in the military, the judiciary, senior managers in the health service and the pay of consultants, GPs (family doctors) and dentists," he said.
"These measures along with the new controls on senior pay which I announced in December will save money immediately and by 2013/14 save more than three billion pounds."
Brown's character has become a focus in campaigning ahead of the election, with the prime minister forced to deny accusations that he intimidated staff.
Brown sought to turn the debate to his advantage, stressing he had the determination to push his policies through.
"When I say that policy and character go together, it's whether you have a clear idea of what you want to do, whether you're determined to push that through, and whether you're sufficiently impatient and strong-willed to push aside the barriers that stand in your way," Brown said.
Financial Mirror, March 10, 2010 |
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10-03-2010 |
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